Which of the Following Is NOT a Reason Why Capital

question 37

Multiple Choice

Which of the following is NOT a reason why capital budgeting for a foreign project is more complex than for a domestic project?

• A) Parent cash flows must be distinguished from project cash flows.
• B) Parent firms must specifically recognize remittance of funds due to differing rules and regulations concerning remittance of cash flows, taxes, and local norms.
• C) Differing rates of inflation exist between the foreign and domestic economies.
• D) All of the above add complexity to the international capital budgeting process.

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Definitions:

Sutherland's Theory

A criminology theory, also known as Differential Association Theory, which posits that criminal behavior is learned through social interactions with others.

Deterrence Doctrine

A theory that argues that the threat of punishment can prevent people from committing crimes.

Certainty

The level of assurance or confidence that an event will occur or a statement is true.

Swiftness

The quality of moving quickly or the ability to act or respond in a fast manner.